Ethnic theatre in the United States played an important role in immigrant communities. Some of the shows were translations of classics, such as Shakespeare performed in Yiddish; others were transfers of plays from foreign countries, such as plays by Ibsen and Frank Wendekind. Many of the shows, however, were written, produced, and performed by immigrants, and consequently expressed the values and ideals the immigrants had picked up in their former country while also commenting on the specific experience of moving to a new country and the struggles this entailed. This type of theatre served as a way for immigrants to reconnect with the culture and people they had left in their old country, allowed the American-born children of immigrants to be exposed to the old world of their parents, and helped immigrants view their experiences as transplants in a new land in a new light. Nights out to the theatre were also a way for immigrants to escape the toils of everyday life; the strong emotions evoked by comedies and tragedies served as a cathartic moment for those who worked long, hard hours under uncaring bosses.
Many immigrants also used ethnic theatre to evoke social change. For example, Luis Valdez created the El Teatro Campesino as a way to encourage migrant farmers to form a union. Others used ethnic theatre to subvert ethnic stereotypes, such as the Chinese-American playwright Frank Chin and the African-American playwright Lorraine Hansberry.
The quality and quantity of ethnic theatre depended on the amount of immigration and from where the immigrant population migrated. At first, ethnic theatres were mostly European, but changes in technology allowed other ethnic groups, such as Asian populations, to come to America and start their own theatres. When immigration was unfettered by too many restrictions, ethnic theatre was bountiful. However, when laws such as the quotas of the 1920s drastically reduced the number of immigrants allowed into the country, the amount of ethnic theatre dwindled. Prejudices also influenced how well the ethnic theatres did. For example, there was a boycott against German theatre during World War I. The economy also held power over ethnic theatre. As such theatre was funded mostly by audiences of poor workers, the theatres always struggled for money. During the Great Depression, only a few ethnic theatres were funded through New Deal programs. Despite these obstacles, however, ethnic theatre survived and continues to be produced to this day.